MANILA, Philippines - Philippine National Bank has successfully completed a rights offering which raised an additional P11.6 billion in fresh capital for its loan portfolio buildup.
The offer period for the PNB’s rights offering of common shares ended in Feb. 3, 2014.
PNB, in a statement, said the offer was oversubscribed, receiving strong support from its shareholders with many of them applying for shares beyond their entitlement.
Lucio Tan holding firm LT Group Inc., the bank’s major shareholder, fully subscribed to its entitlement of the rights offer.
A total of 162.93 million rights shares were issued pursuant to the offer (ratio of 15:100 common shares held) at a price of P71 each.
The gross proceeds from the offer would be used to provide capital injection into Allied Savings Bank, to build and refocus the bank’s consumer lending business.
The offer would also strengthen its capital position under the Basel III standards, which took effect last Jan. 1.
The bank said the offer better positions it to fulfill its medium-term growth objectives and further capitalize on the benefits of its merger with Allied Banking Corp.
“The support shown by the bank’s stockholders to this latest stock rights offering reflects their strong conviction on the long term prospects of PNB’s growth and the strengthening of our position not only in the local banking industry but also in the overseas market that it serves. We are truly appreciative to our stockholders for their show of faith in the capability of PNB’s management to carry the bank to greater heights,†PNB president and chief executive officer Omar Mier said.
Credit Suisse and Deutsche Bank served as joint international lead managers and international underwriters while PNB Capital and Investment Corp. served as sole domestic underwriter.
PNB is currently the country’s fourth largest private domestic bank in terms of total resources with an extensive distribution network of 655 domestic branches and offices and 833 ATMs nationwide.